The Effect of The Psychological Contract on Job Satisfaction and Job Performance
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Abstract
This research aims to study the relationship and impact of psychological contracts on job satisfaction, the impact of job satisfaction on job performance, and the effect of effective human resource management on psychological contracts as well as job satisfaction. In addition, this research also studies the mediating role of psychological contract toward the relationship between effective human resource management and job satisfaction, as well as between effective supervision and job satisfaction. This research was quantitative, using a questionnaire as a tool to collect data from 200 employees from various companies using non-probability sampling method, including convenience sampling. Inferential statistics were analyzed using structural equation modeling (SEM), the analysis of model fit, and the analysis of direct and indirect standard coefficient effects. The findings revealed that: 1) The psychological contract affected job satisfaction. 2) The job satisfaction had an impact on job performance. 3) There is no impact of effective human resource management on psychological contracts. 4) The psychological contract was not a variable mediator in the relationship between effective human resource management and job satisfaction. 5) The psychological contract a complete mediator in the relationship between effective supervision and job satisfaction.
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